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6/17/2020

Employment Security Department
#20-029

FOR IMMEDIATE RELEASE – June 17, 2020

Contact:   media@esd.wa.gov    

Washington economy added back jobs during May

OLYMPIA – Washington’s economy added 52,500 jobs in May and the state’s preliminary seasonally adjusted monthly unemployment rate for May decreased from 16.3 percent to 15.1 percent according to the Employment Security Department (ESD).

Month

Total Jobs (losses or gains)

Unemployment rate

2019 Unemployment Rate

March 2020

-25,400

5.1 percent

4.5 percent

April 2020

-457,800*

16.3 percent*

4.4 percent

May 2020

+ 52,500

15.1 percent

4.4 percent

*Revised from previous preliminary estimates

"While the unemployment rate in Washington fell in May, it remained historically high as the state continued to navigate the economic fallout from the COVID-19 crisis,” said Paul Turek, economist for the department. “Over the past month, a small portion of the jobs lost during the first two months of the pandemic were recovered as the economy begins to re-open across the state.”

The Employment Security Department released the preliminary job estimates from the federal Bureau of Labor Statistics as part of its Monthly Employment Report.

The department also announced that April’s previously reported unemployment rate of 15.4 percent was revised upward to 16.3 percent. April’s preliminary estimated loss of 527,000 jobs was revised to a loss of 457,800 jobs.

The national unemployment rate decreased from 14.7 percent in April 2020 to 13.3 percent in May 2020. In May 2019, the national unemployment rate (revised) was 3.6 percent.

Employment Security paid regular unemployment insurance benefits to 715,542 people in May, an increase of 145,195 over the previous month.

Labor force decreased across the state

The state’s labor force in May was 3,943,500 – a decrease of 19,800 people from the previous month. In the Seattle/Bellevue/Everett region, the labor force decreased by 8,500 over the same period.

From May 2019 through May 2020, the state’s labor force grew by 45,300 and the Seattle/Bellevue/Everett region decreased by 17,900.

The labor force is the total number of people, both employed and unemployed, over the age of 16.

From April 2020 to May 2020, the number of people who were unemployed statewide decreased from 645,100 to 594,300. In the Seattle/Bellevue/Everett region, the number of people who were unemployed decreased from 247,900 to 246,300 over the same period.

Ten industry sectors expanded and three industry sectors contracted in May

Private sector employment increased by 72,600 and government employment decreased by 20,100. Provided below is a summary of the job gains and losses in all thirteen industry sectors.

              Industry sector                               Job gains/losses

Construction

   +30,000

Leisure and hospitality

   +22,600

Education and health services

      +7,000

Manufacturing

       +5,800

Professional and business services

       +4,100

Retail trade

       +3,500

Wholesale trade

       +1,200

Other services

       +1,000

Financial services

          +500

Mining and logging

          +100

Transportation, warehousing and utilities

            -600

Information

         -2,600

Government

       -20,100

 

Year-over-year growth in payroll employment continued to contract

Washington lost an estimated 408,200 jobs from May 2019 through May 2020, not seasonally adjusted. The private sector contracted by 12.5 percent, down an estimated 360,100 jobs, while public sector employment contracted 8.0 percent with a net loss of 48,100 jobs.

From May 2019 through May 2020, twelve major industry sectors contracted while only the information sector added (+1,400) jobs.

The three industry sectors with the largest employment losses year-over-year, not seasonally adjusted, were:

  • Leisure and hospitality down 160,300 jobs
  • Education and health services down 55,900 jobs
  • Government down 48,100 jobs

COVID-19 impacts

Coronavirus (COVID-19) has had impact on the May 2020 survey data. The household survey measures labor force status, including unemployment. The establishment survey measures nonfarm employment by industry.

Check out additional COVID-19 related information and FAQs from the U.S. Bureau of Labor Statistics

Labor market information

Check it out! ESD has new labor market information and tools, including interactive Tableau graphics to highlight popular information and data.

WorkSource

Employment Security is a proud partner in the statewide WorkSource system, which provides employment and training assistance to job seekers and businesses. While WorkSource centers are closed for in-person services during the COVID-19 outbreak, customers can still get help from WorkSource staff by phone and through the Live Chat feature on WorkSourceWA.com. The website provides access to thousands of Washington jobs and other employment resources. Chat agents cannot answer unemployment benefit questions.

Note: The U.S. Bureau of Labor Statistics (BLS) recently updated its “alternative measures of labor underutilization” for states to include annual averages for first quarter 2020. One such alternative measure is the U-6 rate, which considers not only the unemployed population in the official “U-3” unemployment rate, but also marginally attached workers and those employed part time for economic reasons. The U-6 rate is defined by BLS as the “total unemployed, plus all marginally attached workers, plus total employed part time for economic reasons, as a percent of the civilian labor force plus all marginally attached workers.” This U-6 measure measures the “unemployed, underemployed, and those who are not looking but who want a job.”

The U-6 unemployment rate for the first quarter 2020 for Washington state was 7.7 percent. This was higher compared to the 7.6 percent U-6 unemployment rate one quarter prior. The annual U.S. U-6 unemployment rate was 7.2 percent in first quarter 2020.

_________________________________________

Labor market information questions regarding COVID-19

For workers or businesses affected by the current COVID-19 outbreak, the Employment Security Department (ESD) has programs that may be able to help. Please see ESD’s website for more information.  For labor market information questions regarding COVID-19, please email ESD’s Director of Labor Market and Economic Analysis.

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